Producer Price Index for Final Demand Increases Month-Over-Month and Year-Over-Year in January

On Friday, the Bureau of Labor Statistics (BLS) reported that the Producer Price Index (PPI) for final demand, seasonally adjusted, increased 0.3% in January. This follows a 0.1% decline in both November and December. On an unadjusted basis, the index for final demand rose 0.9% for the 12-month period ended in January.

The January advances in the index for final demand is attributable to a 0.6% increase in prices for demand services, the BLS said. In contrast, the index for final demand goods declined 0.2%.

The index for final demand less food, energy, and trade services increased 0.6% in January—the largest advance since moving up 0.6% in January 2023. For the 12-month period ended in January, prices for final demand less foods, energy, and trade services increased 2.6%.